Sales up, profits down at Dave Whelan Sports
INVESTMENT in expanding its chain of shops and health clubs saw Dave Whelan Sports grow sales to £145.5m in the year to the end of March.
The Wigan company, named after the veteran businessman and Wigan Athletic FC owner, said it had made “excellent progress” in tough market conditions as it opened two gyms in Lincoln and Oxford and five new retail shops in Ballymena, Bolton, Crawley, Lancaster and Wigan.
Despite growth in sales margins and EBITDA were below those achieved in 2012, with gross margin dipping from 73.6% to 73% and EBITDA from £15.5m to £14.6m.
Pre-tax profits followed a similar trend, slipping to £5.6m from £7.4m in the previous year. Net debt was cut by more than £3m in the year, and at year end was £96.7m, down from £100.5m in 2012.
The vast majority of the debt is due to Mr Whelan and his family, whose loan to the business increased from £79.4m to £87.3m during the year.
Earlier this month DW Sport chief executive Winston Higham quit the business to focus on other opportunities. The company is now recruiting for his replacement.
The business, which was acquired by Mr Whelan from another of his former ventures JJB Sports in 2009, now employs 2,673 people at 67 health clubs, 65 retail stores and the club shop at Wigan Athletic.
